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Good Lite Appliances purchases 850.0 mition of inventory trom its supptiers every year. They are looking to finance 55,500.000 for 90 days to cover the

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Good Lite Appliances purchases 850.0 mition of inventory trom its supptiers every year. They are looking to finance 55,500.000 for 90 days to cover the purchase of irventory for the Chikstmas season (They need 55,500,000 for 90 days.) Three allematives are being corsidered 1. Increase accounts payatke Suppeer's terms are 2/15 net 45 and Good Lfe Applianous has tradifonaly taken advantige or the discount, paring their suppliers in 15 days. If Good Lide Appliances chooses to forego the discount, they would pay their suppliers in 45 days, instead of 15 . 2. Hightand Bank will let Good Live Applances borrow money, but they require a compensating batance of 15.0 percent of the loan bakance be maintained by Good Life Applances at alil times (ihere are currently no funds on depost with Hightland Bank that would count toward compensaling balances) They will charge 12.0 percent interest per annum for the loan. (Remember calculate interest for just 90 divys, not a full year.) 3. Issue commercia paper tor 90 days, sold at a discounted price of 97.233 percent of the maturty value: Required: (Round al doliar figures to zero (0) decimal places (eg. 5123.456) and al percentiges to two (2) decimal places (e.g: 12.34 percent) A. If the company forgoes the suppler discount and pays their suppliers in the number of days indicated in the question. 1. There will be an increase in the accounts payable batance. How much? 2. What is the annual interest rate assoclated wth foregging the disccunt? B. If the company decides to use a ioan C. What is the annual interest rate associaled with the Commercial Paper? D. Which allemative should the compary choose? (Round all oollar figures to zero (0) decimal places (eg.5123,456) and all percentages fo two (2) decimal places (e.g. 12.34 percent). A. If the company forgoes the supplier discount and pays their suppliers in the number of days indicated in the question. 1. There will be an increase in the accounts payable balance. How much? 2. What is the annual interest rate associated with foreooino the discount? Percent B. What is the annual rate of interest if the company decides to use a loan C. What is the annual interest rate associated with the Commercial Paoer? D. Which altemative should the company choose

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